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Why Renting vs. Buying Can Be More Affordable

Most consumers are either unwilling or reluctant to consider the advantage of renting vs. buying. After a quick, impetuous, and usually expensive purchase becomes a significant inescapable nuisance, the advantage of renting seems almost obvious. Impulse buys leave the new owner with unwanted bills - paying for items that simply cannot be returned. Once regret sets in, the thought of renting whatever you might need suddenly seems appealing.

Renting allows individuals to purchase larger items, like homes and cars, that ordinarily might not be feasible, and smaller items, like computers or TVs that might only be needed on a short-term basis. Another advantage of renting is the reduced cost of maintenance, permitting purchases that are payable in more negotiable terms.

Eliminating Impulse Buys of Fad Items

In our fast-paced modern lifestyle, technology and styles change rapidly, making purchases from a month, six months, or a year ago, virtually obsolete. Why buy a computer or gaming system that will quickly become passé? By renting vs. buying, you are assured of having the most recent items but without the high cost of the initial purchase.

Of course, without much regard to the consequences, people are quick to buy trendy items, only to realize later that their purchase is non-returnable or non-refundable. While indecision does not necessarily always prevent a purchase, the advantage of renting vs. buying could be an effective segue in experimenting with the rented item and deciding whether or not you want to buy your own. By choosing to rent, you can enjoy your item, and not worry about the repercussions.

You're Not Stuck with It

A stringent commitment to paying off monthly installments or dealing with a long term investment is something many consumers shy away from doing. In our world today, people are moving around more than ever. Why be stuck with one property that you may or may not be able to sell, when you can rent and finish your lease or sublet? Why purchase a car when you can rent and exchange for an upgrade in a few months? One advantage to renting is little to no commitment.

After the novelty of a new item has worn off, exasperation looms large. The maintenance and upkeep of the purchase - from a car to a home to an electrical appliance - seem daunting. By taking advantage of renting items, you are able to reduce costs associated with the repairs and coupled with the minimal rental fees, you save more money. The ease of renting vs. buying items you're not bound to keep makes the whole transaction much simpler, and unlike many retailers' strict refund policies, you are able to return your item at the end of your rental period with no questions asked.

Ability to Afford More for Less

One advantage of renting allows you to pay for more items at a cheaper price or in easy installments. You might wonder the difference in buying the item new and paying in installments. Generally, the rented item would be low cost from the start, as it is gently used, and you have the satisfaction of determining the length of time you wish to keep your item.

Another bonus to renting vs. buying are the exclusions of contracts, reduced or no loans (or mortgage or fees), and no large payments upfront. A hard and fast purchase is generally binding and inefficient for people who need basic necessities but are unable to afford them, or people who want more trendy items but want to pay less. Alternatively, individuals with credit problems should initially consider renting vs. buying to begin building up their score and rental history as an alternate means of outright purchasing and high interest loans.

You've Decided to Rent

Now that you have a better understanding of why renting vs. buying can be more affordable, you realize you can save money and still buy more, eliminate impulse buys and not be required to maintain its upkeep. Many find commitments to paying off debts from purchases unfavorable and a hindrance. The advantage of renting is that you are not required to pay high interest fees, mortgages, or sign any long contracts. You can slowly build up a positive rapport with the item's owner, perhaps even boosting your credit score.

Instead of buying, you can rent what you need or want without remorse. Renting vs. buying is an ideal scenario for individuals trying to save money and cut costs, but still want the best possible home, car, gaming system, furniture, etc. available for their hard-earned cash.

About the Author

Woody Alpern, CPA, is the founder and creator of WhyBuy.com, a website that lets you find services and various items to rent online. He is the co-founder of both Capital Investment Advisors and Capital Benefits Administration, Inc. He is also a partner in both firms. In addition, he serves as CEO of real estate investment company Roswell Holdings, LLC. A graduate of the University of South Carolina with both a bachelor's degree and a master's degree in accounting, Alpern spent several years in the tax division of the accounting firm Touche Ross (now Deloitte & Touche) before partnering with Michael Reiner to found his own businesses.

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